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AMERICAN FOREIGIS' FOOD ASSISTANCE
Public Law 480 and Related Materials
COMMITTEE ON AGRICULTURE
AND FORESTRY
UNITED STATES SENATE
AUGUST 13, 1976 '"->->>,,/////
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67-053 WASHINGTON : 1976
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COMMITTEE ON AGRICULTURE AND FORESTRY
HERMAN E. TALMADGE, Georgia, Chairman
JAMES O. EASTLAND, Mississippi ROBERT DOLE, Kansas
GEORGE McGOVERN, South Dakota MILTON R. YOUNG, North Dakota
JAMES B. ALLEN, Alabama CARL T. CURTIS, Nebraska
HUBERT H. HUMPHREY, Minnesota HENRY BELLMON, Oklahoma
WALTER D. HUDDLESTON, Kentucky JESSE HELMS, North Carolina
DICK CLARK, Iowa
RICHARD B. STONE, Florida
PATRICK J. LEAHY, Vermont
Michael R. McLeod, General Counsel and Staff Director
Henry J. Casso, Chief Economist
Carl P. Rose, Counsel
James W. Giltmier, Professional Staff Member
William A. Taggart, Professional Staff Member
Dale L. Stansbury, Economist
Thomas Reese Saylor, Economist
James C. Webster, Chief Clerk and Press Secretary
Phillip L. Fraas, Assistant Counsel
Stephen E. Storch, Assistant Counsel
Roy Frederick, Econornist
Stuart B. Hardy, Professional Staff Member
Reider J. Whpte, Research Assistant
~ 'Q'e.TViM..M.K^Qi^, Clerical Assistant
JT ..^ Helen A. Miller, Clerical Assistant
^ ^,- Laura D. Rice, Clerical Assistant
^ .^ .' Ma.rgx'R^tKei.i.^y, Clerical Assistant
< "C: ' Denise a. Love, Assistant Clerk
Maureen T. Burke, Clerical Assistant
Nancy W. Whitehead, Clerical Assistant
Ann C. Bond, Clerical Assistant
Dune G. Covington, Finance Secretary
Jo R. Patton, Clerical Assistant
Ellen J. Williams, Clerical Assistant
James S. BARKSDiLE, Clerical Assistant
(ID
3m
CONTENTS
Page
Introduction v
How P.L. 480 programs operate 1
A brief history of P.L. 480 5
Agricultural Trade Development and Assistance Act of 1954, as amended
(P.L. 480) 15
Statistical tables relating to P.L. 480 33
(HI)
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INTRODUCTION
America's foreign food assistance is provided under the authority
of P.L. 480, the Agricultural Trade Development and Assistance Act
of 1954.
P.L. 480, popularly called the Food for Peace program, consists of
two operative titles.
Under title I, the Commodity Credit Corporation, a public lending
institution within the U.S. Department of Agriculture, makes loans
on highly favorable terms to finance the sale of U.S. agricultural
commodities to developing nations.
Title II provides authorit}^ for the President to buy American
farm products and donate them to American voluntar^^ agencies, the
World Food Program, or to foreign governments for distribution to
needy individuals abroad.
For over 20 years our Food for Peace program has served as a
model of humanitarian food assistance. Not onl}' have concessional
sales been an important factor in the expansion of markets for our
farm products abroad, but food assistance has provided essential
help for the poorest countries of the world to reach for self -sustained
economic growth.
Every year almost 90 million people benefit from maternal and
child care, school lunch, food for work, and other humanitarian
programs. For millions of disaster victims throughout the world,
Food for Peace shipments have meant life itself. In more than 100
countries throughout the world, the burlap bags of farm commodities
marked with the phrase, ''Given by the People of the United States
of America" are a familiar reminder that Am. erica still practices the
ethic of sharing its abundance.
Over the years. Congress has modified P.L. 480 to meet changes in
the world food situation and supply and demand conditions in the
United States.
The objectives of the program are outlined in section 2 of the Act
itself. Broadly stated, they are:
• expanding international trade;
• developing and expanding overseas markets for American farm
products;
• preventing or alleviating malnutrition and hunger throughout
the world ;
• encouraging economic development and improving food pro-
duction in less developed countries ;
• providing an additional outlet for the products of American
farms and ranches, especially in times of surplus; and
• advancing the objectives of U.S. foreign polic3\
The emphasis on any one objective will vary, over time, as cir-
cumstances vary over the years.
(V)
VI
Exports under P.L. 480 agreements in the past have increased
overall U.S. agricultural exports when there has been a need to do
so. Most agreements also require the recipient country to buy specified
quantities on a commercial basis from the world market, in many
cases from the United States.
In order to provide those interested in and working with our Food
for Peace program ^vith an updated version of P.L. 480, the Com-
mittee on Agriculture and Forestry has compiled P.L. 480, as amended
(most recently, by the International Development and Food Assistance
Act of 1975), along ^^dth background material on the operations of our
Food for Peace efforts.
It is the hope of the Committee that this material will provide
useful background and current reference to those interested in P.L. 4S0
legislative and program activities.
P.L. 480 traditionally has been used to increase the export of U.S.
agricultural commodities and suppor tf arm income b}' providing con-
cessional terms for countnes unable to buy on commercial terms.
The program also has supported market development activities in
both recipient countries and other countries where P.L. 480 earnings
could be used. Title I has been the primary means of achieving this
objective although the programs under title II have market develop-
ment implications.
Another objective of the program is to promote economic develop-
ment in less developed countries.
Under title I agreements, the funds generated by the P.L. 480 com-
modities are used by the recipient government to promote economic
development, including agricultural self-help projects. Commodities
donated under title II are often used for food-for-work projects wliich
are part of overall development plans.
In recent 3'ears, P.L. 480 shipments have leveled off at about
SI billion, down from a high of SLo bilhon in the mid-sLxties. How-
ever, considerably smaller quantities are being shipped due to sub-
stantially higher prices for the commodities programed.
Whereas the annual average volume of shipments between 1968
and 1972 was over 11 million metric tons, the average betvv'een
1973 and 1975 fell to about 5.5 million metric tons.
HOW P.L. 480 PROGRAMS OPERATE
Title I
Title I of P.L. 480 provides for concessional sales of agricultural
commodities to friendly countries. Until the end of 1971, the law
permitted sales agreements which provided for payment in local
currencies on delivery. Since 1972, sales agreements have been ne-
gotiated only for long-term credit repayable in dollars or in cur-
rencies convertible to dollars. Convertible local currency agree-
ments usually allow a longer period for repayment than dollar credit
agreements and are used when a complete transition from local cur-
rency sales to dollar credit is not feasible.
Dollar credit agreements may provide for a specific down payment
in dollars, foreign currency or both, upon delivery of the commodities.
The balance of the agreement is repaid in dollars in approximately
equal annual installments over a period of up to 20 years. Such agree-
ments may also include a grace period of up to 2 years, during which
principal pajmients are not required.
Repayment under convertible local currency agreements is in
dollars or, at the option of the United States, in convertible foreign
currency. The maximum term available under this t3^pe of financing
is 40 years, including a grace period up to 10 years. A down payment,
in dollars, foreign currency, or both, also may be required in this kind
of agreement. Interest rates under both types of financing are set by
law at minimums of 2 percent during a grace period and 3 percent
thereafter. The minimum rates have been used in the majorit}'' of
title I sales agreements.
Although the Commodity Credit Corporation finances the sale and
export of commodities under title I, actual sales are made by private
U.S. suppliers to foreign importers, government agencies, or private
trade entities.
Section 401 of the Act provides that the Secretary of Agriculture
must determine the availability for concessional export of commodities
included in sales agreements. In determining this availability, the
Secretary must consider U.S. productive capacity, domestic require-
ments, farm and consumer price levels, adequacy of carryover stocks,
and anticipated exports for dollars.
Each sales agreement under title I begins with a request from a
foreign government or private trade entity for commodities. The
request is generally submitted to the American Embass}^ in the host
country, and is then transmitted directly to Washington accom-
panied by recommendations of the Embassy and supporting evi-
dence of need for commodities in excess of likely domestic production
and normal commercial imports. Such factors as production and
consumption patterns, export of similar commodities and the supply
position of the participating country are considered.
(1)
In Washington the request is forwarded to the Department of
Agriculture, where the submission is analyzed. From that analysis,
USDA develops a program which provides for suitable commodity
quantities, establishes levels of required commercial imports from
the United States and friendly countries (usual marketing require-
ments), and includes self-help measures suitable to the needs of the
requesting country. The program proposal also deals with the use of
sales proceeds to be generated under the proposed agreement, on the
basis of recommendations of AID, and incorporates all other neces-
sary details.
The Department of Agriculture submits its proposed program to
the P.L. 480 Interagency Staff Committee (ISC). This committee is
chaired by the Department of Agriculture and includes Treasury,
State/AID, Defense, Commerce, and Office of Management and
Budget representatives. The committee considers factor: bearing on
the program, such as:
a. The country's need for the commodit}^, foreign exchange
position, and overall economic status;
b. The possible impact of a title I program on U.S. dollar sales
and other export programs, as well as U.S. needs for local
currency;
c. The effect of such a program on export markets of friendly
supply countries ; and
d. The relationship of the proposed program to the foreign aid
program and the foreign policy of the United States.
Once committee approval is obtained, the proposed credit terms
are submitted to the National Advisor}^ Council on International
Monetary and Financial Policies and consultations with friendly
third countries are undertaken. Congressional agricultural committees
are informed of the proposed program at this time. Negotiating in-
structions are prepared in Washington and forvrarded to the con-
cerned U.S. Embassy. Negotiations are carried on by the Ambassador
or his designees with officials of the host government. Private trade
entity agreements follow the same procedure but are generally
negotiated in Washington by officials of USDA and the requesting
organizations.
Once a title I sales agreement is negotiated and signed, purchase
authorizations are issued by the Department of Agriculture. The
purchase authorizations provide for financing of specific commodity
sales and specify conditions under which financing will be made avail-
able. Where the applicable sales agreement provides for a relatively
small amount of a commodity, a purchase authorization may be issued
for the full amount in the agreement. Where agreement amounts are
large, authorizations are generally spaced over the supply period, which
is usually either a calendar year or a U.S. Government fiscal year. For
private trade entity agreements, purchase authorizations are timed to
coincide with the project requirements of the private trade entit3^
Concurrently with the issuance of a purchase authorization, the
importing country or private trade entity generally apphes to the
Commodity Credit Corporation for a "letter of commitment." The
letter of commitment is a document issued by the CCC to the
importing country's designated American bank, promising to reimburse
the bank for any paj^ments made to American suppliers for approved
sales made under the purchase authorization. When an agreement
requires an initial payment, the letter of commitment provides
financing only for the balance of a purchase authorization's value.
For example, when title I sales agreements provide for an initial
payment of 5 percent, all purchase authorizations issued under that
agreement will indicate CCC financing of 95 percent, and the CCC will
not issue letters of commitment in excess of 95 percent of the value
of the authorization. The remainder must be paid by the importing
country, usually through letters of credit.
Seven days after issuance of the purchase authorization, contracts
may be signed between an importer and U.S. commodity suppliers.
All sales contracts are subject to review and approval by USD A to
insure that they meet the requirements of purchase authorizations
and fall within a prevailing range of market prices. Suppliers then
deliver the commodities to vessels specified by the importing country,
and obtain documents such as on-board bills of lading, inspection, and
weight certificates, USDA Notice of Vessel Approval, etc., w^hich must
be presented to the importing country's designated American bank
for payment. The bank pays the supplier and forwards the required
documents, including commodity title documents, to the ^'approved
applicant," usually a bank. CCC notifies the American Embassy in
the importing country of the disbursement.
Title II
Food donations are provided under title II to support mother and
chiM feeding activities, school feeding projects, food-for-work, and
emergency efforts to alleviate the sufferings of victims of natural
and man-made disasters.
Title II programs are carried out under a variety of arrangements.
Each program must have a ''cooperating sponsor." The sponsor may
be the government of a recipient country, a U.S. nonprofit voluntary
agency or a combination of such agencies, or intergovernmental
organizations such as the World Food Program of the United Nations.
The administration of the title II program is shared jointly by
the Agency for International Development (AID) and the U.S.
Department of Agriculture (USDA). AID is generally responsible for
program operations while USDA determines commodity availabilities
together wdth their volumes and values. AID and USDA participate
jointly in the programing process through the Interagency Staff
Committee. With the exception of those commodities made available
to voluntary agencies, USDA arranges ocean transportation for all
title II commodities.
Program proposals originate from the overseas staffs of U.S. non-
profit voluntary agencies or from AID overseas missions, generally
after a specific request by the recipient country. Program proposals
submitted by voluntary agencies are coordinated at overseas posts
with AID, Food for Peace ofl[icers or other U.S. staff members desig-
nated for such responsibility. Such assigned or designated U.S. foreign
service staff members advise and assist voluntary agencies in program
development and implementation. They also receive, analyze, and
comment on proposals for bilateral food grant assistance. U.S. over-
seas missions also coordinate and cooperate with the representatives
67-053—76 2
of the United Nations agencies such as UNICEF, or the World Food
Program regarding proposals for food grant assistance under multi-
lateral arrangements.
In addition, U.S. overseas missions analj^ze and comment on all
food grant proposals as they relate to the host country's development
objectives. Finally, the missions are responsible for monitoring all
voluntary agency and govemment-to-government programs.
Based on these above responsibilities and arrangements, AID in
Washington coordinates the approval of programs through the
Interagency Staff Committee, authorizes the implementation of
approved programs, and initiates the procedures which result in
title II commodities becoming available to cooperating sponsors and
recipients. The program coordination process in Washington includes
the Departments of Treasury and Commerce and the Office of Manage-
ment and Budget.
A BRIEF HISTORY OF P.L. 480
THE EAKLY YEARS
P.L. 480 is a product of the American farm. Recognizing that
America's agricultural abundance could be put to work toward de-
veloping commercial markets for our farm production and helping
meet the food needs of the developing world, the Senate Committee
on Agriculture and Forestry went to work in 1953 on legislation which
would permit developing countries to purchase U.S. farm commodities
on highly concessional terms for foreign currencies.
On July 24, 1953, Senator Andrew Schoeppel of Kansas, from the
Committee on Agriculture and Forestry, reported S. 2475, a bill to
authorize the President to use agricultural commodities to improve
the foreign relations of the United States and for other purposes.
Four days later, the bill passed the Senate by voice vote.
Referred to the House Committee on Agriculture, the bill was not
acted upon before the adjournment of the first session of the 83rd
Congress and was carried over into the second session.
In the interim, support grew for enactment of a foreign food as-
sistance program.
Representative Clifford Hope reported an expanded version of S.
2475 out of the House Committee on Agriculture on June 9, 1954,
and it was passed by the House on June 16, by voice vote.
On June 22, 1954, the Senate requested a conference with the House
and appointed Senators Aiken, Young, Th^^e, vSchoeppel, Ellender,
Johnston of South Carolina, Holland, and Anderson as conferees.
The House agreed to a conference on the same date and appointed
Congressmen Hope, August H. Andresen, Hill, Cooley, and Poage.
On June 29, 1954, the Conference Report (H. Rept. 1947) was
submitted to the House. Both Houses of Congress approved the report
of the Conference Committee on June 30, and the bill was signed
into law on July 10, 1954.
PURPOSES OF P.L. 480
As originall}^ enacted, title I of P.L. 480 provided for the sale of
U.S. agricultural commodities to foreign governments for local cur-
rencies.
Title I authorized the President to use, with the agreement of
the recipient country, foreign currencies earned from the sale of
agricultural commodities for eight purposes: for promoting economic
development, for developing new markets for American farm products
abroad, for the payment of U.S. obligations abroad, for international
educational exchange, for the procurement of military supplies and
military expenditures abroad, for carrying out programs of U.S.
(5)
6
tjrovernment agencies, grants for financing the purchase of goods or
services for other countries, and purchase of strategic materials. At
least 10 percent of the currencies so generated were to be subject to
congressional appropriation.
Title II provided for the donation of food commodities for famine
relief or other emergency needs abroad.
Title III authorized food donations for emergency situations within
the United States. Title III also permitted the Commodity Credit
Corporation to make commodities available to nonprofit organizations
for distribution in the United States or abroad. Finally, title III
permitted the President to barter agricultural commodities for strate-
gic materials or other goods not produced in the United States.
P.L. 480 extended in 1957 and amended to provide authority
for the President to enter into barter arrangements with Soviet satellite
nations and to permit foreign currencies generated under title I sales
to finance projects which would promote consumption of U.S. agri-
cultural commodities. This latter arrangement, which came to be
known as ''Cooley loans" further enhanced the development aspect of
P.L. 480 and increased the private sector's role.
Restrictions on countries which could receive assistance under
P.L. 480 were further liberalized under the 1958 extension of the Act.
Throughout the history of P.L. 480, the Senate Committee on
Agriculture and Forestr\' has led efforts to strengthen and improve
the humanitarian aspects of the program.
In 1956, Chairman Ellender commissioned Senator Humphrey to
make an extensive study of the program. Among the recommendations
of this report, which was submitted to the Committee on February 18,
1958, was the creation of a '"'Peace Food Administrator" at the Wliite
House level.
The informal title of the program Avas proposed by President
Eisenhower in his January 1959 farm message to the Congress in
which he referred to the use of American farm commodities to promote
the well-being of friendl}^ countries throughout the world as ''using
food for peace."
The President announced that all the pi-ograms using surplus
agricultural commodities abroad would be combined under one general
administration into the Food for Peace program. In the extension of
P.L. 480 that year, the Senate Committee on Agriculture and Forestry
changed the short title of the Act to read the "Food for Peace Act of
1959."
MARKET DEVELOPMENT
In addition to extending and increasing the title I and title II
authorization, the 1959 legislation provided that at least 5 percent of
the title I sales proceeds be made available for agricultural market
development activities.
The 1959 extension also redefined several other specified uses of
foreign currency proceeds. This legislation added a requirement that
any commodity which has been determined to be in surplus must be
first made available for donation to needy persons in the United States,
insofar as possible, before being made available under title I.
A requirement was also placed on titles II and III to identify
commodities made available abroad under each program to be iden-
tified as being furnished by the people of the United States.
The most important change in the 1959 legislation was the addition
of a new title IV which authorized long-term credit sales of agricultural
commodities for dollars to friendty nations. Commodities could be
delivered annually for periods up to 10 3"ears with pa3Tnents to be
made over a period up to 20 ^''ears. This authority for long-term dollar
credit was not utilized until 1961, but transition from sales for foreign
currencies was mandated in the 1966 legislation, the dollar credit
arrangement now exclusively dominates the P.L. 480 sales program.
DEVELOPMENT ASSISTANCE
Responding to a growing awareness of the development needs of
the poor nations of the world, the Agriculture Committees of the
Congress began to redirect P.L. 480 to stress the humanitarian and
development aspects of the program.
In 1960, title II, which at that time was limited to disaster and
emergency food relief, was extended for one year to provide for the use
of commodities in programs wherebj^ food might be used as payment for
the poor and jobless in public works projects in developing countries.
This use, which came to be called ''food for work," became permanent
authority under section 202 the following year.
The Private Trade Entity program (PTE) was established by an
amendment to title IV in 1962. Under this authority the Secretary of
Agriculture is permitted to enter into agreements with U.S. or foreign
private enterprise to finance the sale of U.S. agricultural comn^odities
for dollar credits. The proceeds accruing from resale of such com-
modities in a developing nation must then be applied to a specified
project to improve consumption of U.S. farm products or to con-
tribute to the economic development of the country concerned.
FIGHTING HUNGER
The Agriculture Committees made sweeping changes in 1964 and
1966 which further strengthened the development and humanitarian
aspects of the program.
In the 1964 report of the Committee on legislation to extend P.L.
480, the program was claimed to be of ''. . . incalculable benefit to many
recipient countries of the free world as well as to the United States ..."
in terms of ''opening . . . effective outlets for America's abundance ..."
and for enabling the ". . . United States to combat famine, malnutri-
tion, and hunger in less developed countries and to promote their
growth — a growth it is hoped, that eventual!}^ will mean enlarged
commicrcial export markets for U.S. agriculture and industry."
In order to better address these objectives, the Congress made sev-
eral changes in the extension of 1964. The limitations on the accumula-
tion of currencies generated from title I sales which could be used for
Cooley loans was eliminated and the percentage of foreign currencies
for use by U.S. agencies abroad was increased from 10 percent to 20
percent.
The Act was further amended to provide that foreign currencies be
convertible into dollars insofar as those currencies weie not needed for
the purposes described in the Act.
The 1964 extending legislation also amended the terms of sale under
title I by providing that the exchange rate used in sales for local
currencies shall be the highest rate obtainable by any other nation.
Another amendment provided that long-term dollar credit sales
under title IV could not be more favorable to the recipient country
than the terms extended for development loans under the Foreign
Assistance Act.
The 1964 legislation placed a prohibition on the sale of title I com-
modities to communist-controlled governments, countries trading
with Cuba, countries which are involved in military aggression against
nations with which the United States has diplomatic ties, and countries
using funds from the United States for purposes which are against
American interests. Internal securit}^ was added to the Act as an ac-
ceptable use of foreign currencies generated from title I sales. In
addition, congressional scrutiny over agreements providing for the
grant of foreign currencies for other than military purposes or any use
of loan repayments was increased by requiring the review of all such
agreements hy the House and Senate Agriculture Committees.
The 1964 legislation also established an advisory committee to
oversee and advise the President on the status and use of foreign
currencies accrued under title I, composed of the chairmen and
ranking minority members of the House and Senate Agriculture
Committees and the chief executive officers of the Bureau of the
Budget, Agency for International Development, and Department' of
Agriculture. While the functions and membership of the Committee
were subsequently expanded, this body has met infrequentl}^
This legislation established authority for the purchase of foreign
currencies accruing under title I to be used to carry self-help activities
under donation programs.
Finally, the 1964 extension also included permanent authority for
the Commodity Credit Corporation to finance the differential between
U.S. and world shipping rates which arises as a result of the require-
ment that 50 percent of title I shipments are transported on U.S.
vessels.
A FUNDAMENTAL SHIFT
The most comprehensive restructuring of the law was accomplished
in 1966. Congress com.bined title I foreign currenc}^ sales and title IV
long-term dollar credit sales into the present title I.
A progressive transition away from sales for foreign currencies was
required under these amendments and a mechanism b}^ which the
United States could accept convertible local currencies over 40 years
with a 10-year grace period was authorized to ease the transition
requirement. The Act was also amended to require a down paA ment
of at least 5 percent on title I sales whenever practicable.
The reorganization also folded title III (donations through non-
profit voluntary and international agencies) into title II (donations
for famine relief). The barter authority remained under title III.
A significant addition was a mandate that its assistance be used to
the maximum extent possible to complement the development activi-
ties within the recipient countries. These amendments required that
countries receiving assistance under title I demonstrate an interest and
an effort to develop their agricultural production potential. Twenty
9
percent of the foreign currencies accumulated under title I sales were
required to be used for such ''self-help" programs in these countries.
It was at this time that the Agriculture Committees formally re-
moved the emphasis of the program from surplus disposal toward
market development and humanitarian and development assistance.
Maternal and child care activities and population control were
added to the list of programs which could be funded with foreign cur-
rencies grants under title I. Up to 25 percent of the U.S. heJd foreign
currencies were specified for sale to American tourists in excess cur-
rency countries, and most of the foreign currency uses were made
subject to the congressional appropriations process.
The 1966 extension also added countries trading with North Viet-
nam to the list of nations ineligible for title I assistance.
Title I was amended to require that the President take steps to
assure that the United States obtain a fair share of any increased
agricultural purchases of a participating developing country. The
title III barter program w^as amended to prevent transshipments of
U.S. agricultural commodities obtained under the authority of that
title.
The 1966 extension reduced the membership of the congressional
executive Advisory Committee, provided for four meetings of the
committee annually, and specified rotation of the chairmanship.
POPULATION PROGRAMS
The 1968 extension made several changes. The Senate Committee
on Agriculture and Forestry amended the Act to provide that 5
percent of title I local currencies be made available for voluntary
population control programs, and established voluntary population
control program.s as one of the self-help measures to be considered
before entering into a title I agreement.
The Committee also added language to the Act requiring that at
least 2 percent of the local currency received from each country be
set aside to finance international, educational and cultural exchange
activities and activities of American educational institutions under
various education acts.
The amounts of foreign currencies needed for five selected currency
uses were required to be specified under the title I sales agreement.
Where currencies are so used such amount would be paid at the time
the commodities were delivered and would then be considered as
an advance payment of the earliest installments of such agreements.
Up to 50 percent of the foreign currencies earned from the sale of
title I commodities could be converted for sale to U.S. or participating
country contractors to pay wages earned in public works projects and
50 percent of the foreign currencies could be converted for sale to U.S.
importers who buy materials from the participating country.
The 1968 extension authorized the use of foreign currencies for
carrying out programs to control rodents, insects, weeds, and other
animal and plant pests.
Finally, the extension tightened the prohibition on sales to North
Vietnam by excluding any exporter doing business directly or indirectly
with that country from title I financing.
10
INTO THE 1970'S
Between 1968 and 1975, P.L. 489 was amended infrequently.
The Agricultural Act of 1970 extended the authorization for the
program and added uses of foreign currencies by U.S. agencies for
educational and cultural exchange to those uses which may be sub-
ject to the congressional appropriations process.
The Agriculture and Consumer Protection Act of 1973 extended
P.L. 480 through 1977 with minor amendments. It required that the
President assure that commercial supplies were available to meet
demands developed through P.L. 480 programs. Another amendment
prohibited sales or donations to North Vietnam unless specifically
authorized by act of Congress enacted after July 1, 1973.
Amendments to the Foreign Assistance Acts of 1973 and 1974
affected the title I program. The Foreign Assistance Act of 1973
prohibitied the use of foreign currency proceeds from loan repayments
to be used for common defense or military purposes. This effectively
repealed the common defense currency uses of P.L. 480. The Foreign
Assistance Act of 1974 provided that, for fiscal 3^ear 1975, not more
than 30 percent of U.S. foreign food assistance be made available to
countries other than those designated by the United Nations as
"most seriously affected" b}^ the current economic crisis.
THE HUMANITARIAN PHASE
Legislative jurisdiction of P.L. 480 was modified in the House of
Representatives in an overall reorganization for the 94th Congress.
The Committee on Agriculture retained jurisdiction over the
program's acquisition of farm commodities and other domestic
operations in the United States, and the Committee on International
Relations was given jurisdiction over its foreign distribution aspects.
The House Committee on International Relations in 1975 initiated
several amendments to foreign assistance and food assistance pro-
grams; in the Senate, the bil) was considered and amended by, in
turn, the Committee on Foreign Relations and the Committee on
Agriculture and Forestry.
The result was the International Development and Food Assistance
Act of 1975 (P.L. 94-161), which amended P.L. 480 in several ways,
continuing the strengthening of the program's humanitarian and
agricultural development objectives.
At least 75 percent of P.L. 480 title I programing is to be assigned
to those countries wdth per capita incom.es of $300 or less annually, a
criterion which replaced the 1974 language which used a United
Nations list of most seriously affected nations as the basis for pro-
graming and directed 75 percent of title I programing to these nations.
The new law also directed the President to submit to the House and
Senate Committees on Agriculture and International Affairs, by
November 1 of each year, a revised global assessment of food produc-
tion and needs, along with an updated program of food assistance for
the current fiscal 3"ear which reflected the availability of food to meet
the need.
In addition, it directed the President to seek international agreement
subject to congressional approval, on a sj'stem of food reserves to
meet emergency food shortages, with strong recommendations that
it safeguard farmers and consumers against market price disruptions.
11
The new law also urges the President to maintain a significant
United States contribution toward the World Food Conference
target of at least 10 million tons of food assistance annualh', and urges
him to encourage other donor countries to increase and maintain their
contributions.
Other 1975 amendments are designed to encourage self-help in
recipient comitries to increase farm production, especially through
small family agriculture, and improve facilities for transportation,
storage, and distribution of food, and to reduce population growth.
The President would have authority to waive repayment of part of
title I loans provided that the recipient country used the proceeds for
population control or improving local food self-sufficiency, up to 15
percent of the total value of all title I agreements.
The Act deleted a specific provision for waiver of the ban on title I
sales to countries dealing with Cuba and North Vietnam, and sub-
stituted a provision for the President to waive the ban if he finds it in
the national interest to do so — a v/aiver similar to that in the Foreign
Assistance Act of 1961. The President would be required to report any
such waiver to the Congress within 10 days.
Also repealed was a provision for the use of foreign currency pro-
ceeds for internal security purposes, a provision which had been
nullified, in effect, by section 40 of the Foreign Assistance Act of 1973.
Another new provision requires the U.S. to emphasize the use of
foreign currency proceeds from title I sales for activities which improve
the lives of the poorest in recipient countries.
The amendments expanded the advisory committee created in
1964 to include also the chairmen and ranking minority members of
the Senate Committee on Foreign Relations and the House Com-
mittee on International Relations, and allovv^ed all members to desig-
nate alternates to represent them at committee meetings.
DETAILED DESCRIPTION OF 19 75 A:MENDMENTS
The International Development and Food Assistance Act of 1975
(P.L. 94-161) added five subparagraphs to the general policy state-
ment of P.L. 480 to provide that, in furnishing food aid under the
Act, the President shall :
(1) give priority consideration in meetmg urgent food needs abroad
to the requirements of those countries most seriously affected by food
shortages, and which are unable to meet those requirements through
normal commercial purchases ;
(2) continue to urge other donor countries to increase their partici-
pation in efforts to address food needs of the developing world;
(3) relate U.S. assistance to self-help by the aid-receiving countries
toward increasing their own agricultural production as well as im-
proving their facilities for transportation, storage, and distribution
of food commodities;
(4) assure that special consideration in the allocation of commodities
or concessional financing under P.L. 480 is given to the potential for
expanding export markets for U.S. agricultural commodities; and
(5) give appropriate recognition to and support of a strong American
farm economy in providing for the food security of consumers in the
United States and throughout the world.
67-053—76 3
12
Referring to the World Food Conference recommendation that
donor countries provide a total of at least 10 million tons of food as-
sistance annually, a new section 3 urges the President to maintain a
significant U.S. contribution to this target and to encourage other
countries to maintain and increase their contributions as well.
Section 103 of P.L. 480 was amended in several respects.
Subsection 103(a) was amended to require the President, in exer-
cising title I authority, to take into account self-help efforts aimed at
increasing agricultural production, especiall}^ through small family
farm agriculture, improving their facilities for transportation, storage,
and distribution of food commodities, and reducing population growth
rates.
Subsection 103(b) was amended to permit foreign currency pro-
ceeds from sales under title I which are used for the specified pur-
poses of section 106(b)(2) to be considered as advance payment
of title I credits in accordance with agreements between the United
States and the foreign government.
The second proviso of subsection 103(d) was deleted. This subsec-
tion provided a waiver under specified circumstances of the prohibi-
tion on title I sales to countries which sell or furnish goods to, or
permit their ships to carry goods to or from, Cuba or North Vietnam.
In lieu of this proviso there was inserted a general national interest
waiver authority of the same type now applicable to assistance under
the Foreign Assistance Act of 1961. The President is required to re-
port the determination of any such waiver to the Congress within 10
days of such action.
Section 104 was amended by repealing subsection (c), which pro-
vides for the use of local currency proceeds to procure equipment,
materials, facilities, and services for the common defense including
internal security. The subsection already had been nullified, in effect,
by section 40 of the Foreign Assistance Act of 1973.
Section 106(b) of P.L. 480 was amended by adding a requirement
that the United States, in negotiating agreements with countries
receiving title I agricultural commodities, emphasize the use of foreign
currency proceeds, from the sale of those commodities, for activities
which directly improve the lives of the poorest of their people and
their capacity to participate in the development of their countries.
Section 106(b) was also amended to authorize the Executive Branch
to conclude agreements under which the use of local currency proceeds
for agreed development purposes may, to that extent, be deemed pay-
ment of the dollar obligation to the U.S. Government. This amend-
ment directs that, in determining the use of proceeds under this
arrangement, greatest emphasis shall be placed on carrying out pro-
grams of agricultural development, rural development, nutrition and
the activities described under section 406(a)(1) of P.L. 480 in those
countries which are undertaking self-help measures (enumerated in
section 109 of P.L. 480), consistent with the policy objectives of P.L.
480 and sections 103 and 104 of the Foreign Assistance Act of 1961.
For any fiscal year, payments under this provision may not exceed
15 percent of the total value of all title I agreements. This new author-
ity is prospective only and is not to be used to modify existing
agreements.
Uses of local currencies under this provision must be described in
reports required by section 408 of P.L. 480 and section 657 of the
Foreign Assistance Act of 1961.
13
Section 109(a) of P.L. 480 was amended to add a requirement
that, in considering self-help measures by developing countries before
entering into title I sales agreements with these countries, the Presi-
dent shall take into particular account the extent to which such
measures are being carried out so as to contribute directly to develop-
ment progress in poor rural areas and to enable the poor to participate
actively in increased production through small farm agriculture.
Another new section was added to title II of P.L. 480 providing
that, except in the case of famine or other urgent or extraordinary
relief requirements, no assistance shall be provided under title II of
P.L. 480 pursuant to agreements providing for the generation of
foreign currency proceeds unless (1) the recipient country is under-
taking self-help measures in accordance with section 109 of P.L. 480,
(2) the specific uses to which the foreign currencies are to be put are
set forth in a written agreement between the United States and the
recipient country, and (3) such agreements provide that the curren-
cies will be used for the purposes specified in section 103 of the Foreign
Assistance Act of 1961, as amended.
Information on such uses must be included in the reports required
by section 408 of P.L. 480 and section 657 of the Foreign Assistance
Act.
Section 407 of P.L. 480 was amended to allow members of the P.L.
480 Advisory Committee to designate persons to represent them on
the Committee.
The Advisory Committee, as presently established under section
407 of P.L. 480, is composed of the Secretary of State, the Secretary
of the Treasury, the Secretary of Agriculture, the Director of the
Office of Management and Budget, the Administrator of the Agency
for International Development, the Chairman and the ranking minor-
ity member of the House Committee on Agriculture and the House
Committee on International Relations, and the Chairman and rank-
ing minority member of both the Senate Committee on Agriculture
and Forestry and the Senate Committee on Foreign Relations.
Section 408 of P.L. 480 was amended by changing the annual
report required by this section to a ''fiscal year" rather than "calendar
year" basis.
Two new subsections, (b) and (c) were also added to section 408.
Subsection 408(b) requires the President, in his annual report to
designated committees of the Congress of planned programing of food
assistance for each fiscal year, to include a global assessment of food
production and needs; self-help steps being taken under P.L. 480,
section 109(a) ; steps being taken to encourage other donors to increase
their food assistance efforts; and the relationship between P.L. 480
food assistance and other assistance provided to each country b}' the
United States and other donors.
Subsection 408(c) requires the President to submit to the House
Committee on Agriculture, the House Committee on International
Relations, the Senate Committee on Agriculture and Forestry and the
Senate Committee on Foreign Relations not later than November 1
of each year a revised global assessment of food production and needs,
and revised planned programing of food assistance for the current
fiscal year, reflecting to the maximum feasible extent the actual
availabilities of food commodities for assistance.
14
A new section 412 in P.L. 480 authorizes and encourages the
President to seek international agreement, subject to congressional
approval, for a system of food reserves to meet food shortage emer-
gencies and to provide insurance against unexpected food production
shortages, v,dth costs of such a system to be equitably shared among
nations, and fhm safeguards to be given to farmers and consumers
against market price disruption therefrom.
A new section 213 calls upon the President to strengthen the
efforts of the United States to carry out the recommendations of the
World Food Conference and requires the President to submit a
detailed report to the Congress not later than November 1, 1976,
describing the steps he has taken to carry out the recommendations
of the Conference.
Section 406 of P.L. 480 was amended to transfer the authority to
establish and administer a program of farmer-to-farmer assistance
from the Department of Agriculture to the President and provides
that the program be coordinated with other foreign assistance activi-
ties of the United States.
EXTENSION IN 1977
The current authorization for activities conducted under P.L. 480
wni expire on December 31, 1977. The Committee on Agriculture and
Forestry of the Senate and the appropriate Committees of the House
of Representatives expect to take up ;legislation in 1977 to extend
the authorization.
AGRICULTURAL TRADE DEVELOPMENT AND
ASSISTANCE ACT OF 1954, AS AMENDED
(7 U.S.C. 1691-1692. 1701-1709, 1721-1725, 1731-1736d)
Public Law 480 — 83d Congress
AN ACT To increase the consumption of United States agricultural commodities
in foreign countries, to improve the foreign relations of the United States, and
for other purposes
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That this Act may be cited as
the '^Agricultural Trade Development and Assistance Act of 1954'\
Ssc. 2. The Congress hereby declares it to be the policy of the
United States to expand international trade; to develop and expand
export markets for United States agricultural commodities; to use the
abundant agricultural productivity of the United States to combat
hunger and malnutrition and to encourage economic development in
the developing countries, with particular emphasis on assistance to
those countries that are determined to improve their ovrn agricultural
production; and to promote in other ways the foreign policy of the
United States. (7 U.S.C. 1691.)
In furnishing food aid under this Act, the President shall —
(1) give priority consideration, in helping to meet urgent food
needs abroad, to making available the maximum feasible volume
of food commodities (with appropriate regard to domestic price
and supply situations) required by those countries most seriously
affected by food shortages and by inability to meet immediate
food requirements on a normal commercial basis;
(2) continue to urge all traditional and potential new donors
of food, fertilizer, or the means of financing these commodities
to increase their participation in efforts to address the emergency
and longer term food needs of the developing world;
(3) relate United States assistance to efforts by aid-receiving
countries to increase their ovvTI agricultural production, with
emphasis on development of small, family farm agriculture, and
improve their facilities for transportation, storage, and distribu-
tion of food commodities;
(4) give special consideration to the potential for expanding
markets for America's agricultural abundance abroad in the allo-
cation of commodities or concessional financing; and
(5) give appropriate recognition to and support of a strong
and viable American farm economy in providing for the food
security of consumers in the United States and throughout the
world.
Sec. 3. Pursuant to the World Food Conference recommendation
that donor countries provide a total of at least ten million tons of
food assistance to needy nations annually, the President is urged to
(15)
16
maintain a significant United States contribution to this goal and
to encourage other countries to maintain and increase their contribu-
tions as well.
Title I
Sec. 101. In order to carry out the policies and accomplish the
objectives set forth in section 2 of this Act, the President is authorized
to negotiate and carry out agreements with friendly countries to
provide for the sale of agricultural commodities for dollars on credit
terms or for foreign currencies. (7 U.S.C. 1701.) Regulations: 7 CFR
Part 17.
Sec. 102. For the purpose of carrying out agreements concluded
under this Act the Commodity Credit Corporation is authorized to
finance the sale and exportation of agricultural commodities whether
from private stocks or from stocks of the Commodity Credit Cor-
poration: Provided, That the Commodity Credit Corporation shall
not finance the sale and export of agricultural commodities under this
Act for any exporter which is engaging in, or in the six months im-
mediately preceding the apphcation for such financing has engaged in,
any sales, trade, or commerce with North Vietnam, or with any
resident thereof, or which owtis or controls any company which is
engaging in, or in such period has engaged in, any such sales, trade,
or commerce, or which is owTied or controlled by any company or
person which is engaging in, or which in such period has engaged in,
any such sales, trade, or commerce neither directly or through any
branch, subsidiary, affiliate, or associated company: Provided further,
That such application for financing must be accompanied by a state-
ment in wliich are Usted by name, address, and chief executive officers
all branches, afiiHates, subsidiaries and associated companies, foreign
and domestic, in which the appUcant has a controlling interest and
similar information for all companies which either directly or tiirough
subsidiaries or otherwise have a controlhng interest in the appHcant
company. (7 U.S.C. 1702.)
Sec. 103. In exercising the authorities conferred upon him by this
title, the President shall —
(a) Take into account efforts of friendly countries to help them-
selves toward a greater degree of self-rehance, including efforts to
increase their own agricultural production, especially through small,
family farm agriculture, to improve their facilities for transportation,
storage, and distribution of food commodities, and to reduce their
rate of population growth;
(b) Take steps to assure a progressive transition from sales for
foreign currencies to sales for dollars (or to the extent that transition
to sales for dollars under the terms applicable to such sales is not
possible, transition to sales for foreign currencies on credit terms no
less favorable to the United States than those for development loans
made under section 201 of the Foreign Assistance Act of 1961, as
amended, and on terms which permit conversion to dollars at the ex-
change rate applicable to the sales agreement) at a rate whereby the
transition can be completed by December 31, 1971: Provided, That,
except where he determines that it would be inconsistent with the
objectives of the Act, the President shall determine the amount of
foreign currencies needed for the uses specified in subsection (a), (b).
17
(c), (e), and (li) of section 104, and in section 106(b)(2) and the agree-
ments for such credit sales shall provide for payment of such amounts
in dollars or in foreign currencies upon delivery of the agricultural
commodities. Such payment may be considered as an advance payment
of the earliest installments.
(c) Take reasonable precautions to safeguard usual marketings of the
United States and to assure that sales under this title will not unduly
disrupt world prices of agricultural commodities or normal patterns of
commercial trade with friendly countries ;
(d) Make sales agreements only with those countries which he deter-
mines to be friendly to the United States: Provided, That the President
shall periodically review the status of those countries which are
eligible under this subsection and report the results of such review to
the Congress. As used in this Act, ''friendly country" shall not include
(1) any country or area dominated or controlled by a foreign govern-
ment or organization controlling a world Communist movement, or
(2) for the purpose only of sales of agricultural commodities for
foreign currencies under title I of this Act, any country or area domi-
nated by a Communist government, or (3) for the purpose only of
sales of agricultural commodities under title I of this Act, any nation
which sells or furnishes or permits ships or aircraft under its registry
to transport to or from Cuba or North Vietnam (excluding United
States installations in Cuba) any equipment, materials, or com-
modities so long as they are governed by a Communist regime:
Provided, That this exclusion from the definition of "friendly country"
may be waived by the President if he determines that such waiver
is in the national interest and reports such determination to the
Congress within 10 days of the date of such determination, or (4)
for the purposes only of sales under title I of this Act the United
Arab Republic, unless the President determines that such sale is in the
national interest of the United States. No sales to the United Arab
Republic shall be based upon the requirements of that nation for
more than one fiscal year. The President shall keep the President of
the Senate and the Speaker of the House of Representatives fully
and currently informed with respect to sales made to the United
Arab Republic under title I of this Act. Notwithstanding any other
Act, the President may enter into agreements for the sale of agricul-
tural commodities for dollars on credit terms under title I of this
Act with countries which fall mthin the definition of "friendly coun-
try" for the purpose of such sales and no sales under this Act shall
be made with any country if the President finds such country is (a)
an aggressor, in a military sense, against any country having diplo-
matic relations with the United States, or (b) using funds, of any
sort, from the United States for purposes mimical to the foreign
policies of the United States;
(e) Take appropriate steps to assure that private trade channels are
used to the maximum extent practicable both with respect to sales
from privately o\^Tied stocks and with respect to sales from stocks
owned by the Commodity Credit Corporation and that small business
has adequate and fair opportunity to participate in sales made under
the authority of this Act;
(f) Give special consideration to the development and expansion of
foreign markets for United States agricultural commodities, with
18
appropriate emphasis on more adequate storage, handling, and food
distribution facihties as well as long-term development of new and
expanding markets by encouraging economic growth;
(g) Obtain commitments from purchasing countries that will prevent
resale or transshipment to other countries, or use for other than
domestic purposes, of agricultural commodities purchased under this
title, without specific approval of the President;
(h) Obtain rates of exchange applicable to the sale of commodities
under such agreements which are not less favorable than the highest of
exchange rates legally obtainable in the respective countries and which
are not less favorable than the highest of exchange rates obtainable by
any other nation;
(i) Promote progress toward assurance of an adequate food suppty by
encouraging countries with which agreements are made to give higher
emphasis to the production of food crops than to the production of such
nonfood crops as are in world surplus ;
(j) Exercise the authority contained in title I of this Act to assist
friendly countries to be independent of domination of control by any
world Communist movement. Nothing in this Act shall be construed as
authorizing sales agreements under title I with any government or
organization controlling a world Communist m^ovement or with an^^
country with which the United States does not have diplomatic
relations ;
(k) Whenever practicable require upon deliver}^ that not less than
5 per centum of the purchase price of any agricultural commodities
sold under title I of this Act be payable in dollars or in the types or
kinds of currencies which can be converted into dollars;
(1) Obtain commitments from friendl}^ purchasing countries that will
insure, insofar as practicable, that food commodities sold for foreign
currencies under title I of this Act shall be marked or identified at point
of distribution or sale as being provided on a concessional basis to the
recipient government through the generosit}^ of the people of the
United States of America, and obtain commitments frcm. purchasing
countries to publicize widely to then- people, by public media and other
means, that the commodities are bemg provided on a concessional basis
through the friendship of the American people as food for peace;
(m) Require foreign currencies to be convertible to dollars to the
extent consistent with the effectuation of the purposes of this Act, but
in any event to the extent necessary to (1) permit that portion of such
currencies made available for payment of United States obligations to
be used to meet obligations or charges payable by the United States or
any of its agencies to the government of the importing country or any
of its agencies, and (2) in the case of excess currency countries, assure
convertibility by sale to American tourists, or otherwise, of such addi-
tional amount (up to twent^'-five per centum of the foreign currencies
received pursuant to each agreement entered into after the effective
date of the Food for Peace Act of 1966) as may be necessary to cover all
normal expenditures of American tourists in the importing country;
(n) Take maximum precautions to assure that sales for dollars on
credit terms under this Act shall not displace an}^ sales of United States
agricultural commodities which would otherwise be made for cash
dollars;
19
(o) Take steps to assure that the United States obtains a fair share
of any increase in commercial purchases of agricultural commodities by
the purchasing country and that commercial supplies are available
to meet demands developed through programs carried out under this
Act;
(p) Assure convertibility at such uniformly applied exchange rates
as shall be agreed upon of up to 50 per centum of the foreign currencies
received pursuant to each agreement by sale to United States or pur-
chasing country contractors for payment of wages earned in the de-
velopment and consummation of works of public improvement in the
purchasing countrs^; and
(q) Assure convertibility of up to 50 per centum of the foreign cur-
rencies received pursuant to each agreement b}' sale of United States
importers for the procurement of materials or commodities in the pur-
chasing country. (7 U.S.C. 170o.)
Sec. 104. Notwithstanding any other provision of law, the President
may use or enter into agreements with foreign countries or interna-
tional organizations to use the foreign currencies, including principal
and interest from loan repa^'ments, which accrue in connection with
sales for foreign currencies under this title for one or more of the fol-
lowing purposes:
(a) For paATnent of United States obligations (including obligations
entered into pursuant to other legislation) ;
(b) For carrving out proo:rams of United States Government agencies
to—
(1) help develop new markets for United States agricultural
commodities on a mutually benefiting basis. From sale proceeds
and loan repayments under this title not less than the equivalent
of 5 per centum of the total sales made each year under this title
shall be set aside in the amounts and kinds of foreign currencies
>pecified by the Secretary of Agriculture and made available
in advance for use as provided by this paragraph over such period
of years as the Secretary of Agriculture determines will most
effectively carrA^ out the purpose of tliis paragraph: Pronided,
That the Secretary of Agriculture may release such amounts of
the foreign currencies so set aside as he determines caimot be
effectively used for agricultural market development purposes
under this section, except that no release shall be made until
the expiration of thirty days follo\\dng the date on which notice
of such proposed release is transmitted by the President to the
Senate Committee on Agriculture and Forestry and the Senate
Committee on Foreign Relations and to the House Committee
on Agriculture and the House Committee on International
Relations, if transmitted while Congress is in session, or sixty
days following the date of transmittal if transmitted wliile Con-
gress is not in session. Provision shall be made in sale and loan
agreements for the convertibility of such amount of the proceeds
thereof (not less than 2 per centum) as the Secretaiy of Agricul-
ture determines to be needed to carry out the purpose of this
paragraph in those countries which are or offer reasonable
potential of becoming dollar markets for United States agricul-
tural commodities. Such sums shall be converted into the types
67-053 — 76-
20
and kinds of foreign currencies as the Secretary deems necessary
to carr}' out the provisions of this paragraph and such sums shall
be deposited to a special Treasury account and shall not be made
available or expended except for carrying out the provisions of
this paragraph. Notwithstanding any other provision of law,
if sufficient foreign currencies for carr^ang out the purpose of
this paragraph in such countries are not otherwise available,
the Secretar}^ of Agriculture is authorized and directed to enter
into agreements with such countries for the same of agricultural
commodities in such amounts as the Secretary of Agriculture
determines to be adequate and for the use of the proceeds to
cany out the purpose of this paragraph. In carr^'ing out agricul-
tural market development activities, nonprofit agricultural
trade organizations shall be utilized to the maximum extent
practicable. The purpose of this paragraph shall include such
representation of agricultural industries as may be required
during the course of discussions on trade programs relating either
to individual commodities or groups of commodities;
(2) finance with not less than 2 per centum of the total sales
proceeds received each year in each country activities to assist
international educational and cultural exchange and to provide
for the strengthening of the resources of American schools,
colleges, universities, and other public and nonprofit private
educational agencies for international studies and research under
the programs authorized by title VI of the National Defense
Education Act, the Mutual Educational and Cultural Exchange
Act of 1961, the International Education Act of 1966, the Higher
Education Act of 1965, the Elementary and Secondary Educa-
tion Act of 1965, the National Foundation on the Arts and the
Humanities Act of 1965, and the Public Broadcasting Act of 1967;
(3) collect, collate, translate, abstract, and disseminate scientific
and technological information and conduct research and support
scientific activities overseas including programs and projects of
scientific cooperation between the United States and other
countries such as coordinated research against diseases common
to all of mankind or unique to individual regions of the globe,
and promote and support programs of medical and scientific
research, cultural and educational development, family planning,
health, nutrition, and sanitation;
(4) acquire by purchase, lease, rental, or otherwise, sites and
buildings and grounds abroad, for United States Government use,
including offices, residence quarters, community and other
facilities, and construct, repair, alter, and furnish such buildings
and facilities;
(5) finance under the direction of the Librarian of Congress, in
consultation with the National Science Foundation and other
interested agencies, (A) programs outside the United States for
the anal^^sis and evaluation of foreign books, periodicals, and
other materials to determine whether they would provide in-
formation of technical or scientific significance in the United
States and whether such books, periodicals, and other materials
are of cultural or educational significance, (B) the registr}^,
indexing, binding, reproduction, cataloging, abstracting, translat-
21
ing, and dissemination of books, periodicals, and related materials
determined to have such significance; and (c) the acquisition
of such books, periodicals, and other materials and the deposit
thereof in libraries and research centers in the United States
soecializing in the areas to which the}^ relate.
(c) [Deleted on Decemb-r 20, 1975, by Public Law 94-161.]
(d) For assistance to meet emergenc}^ or extraordinary relief require-
ments other than requirements for food commodities: Provided, That
not more than a total amount equivalent to $5,000,000 ma}; be made
available for this purpose during any fiscal year.
(e) For use to the maximum extent under the procedures established
by such agency as the President shall designate for loans to United
States business firms (including cooperatives) and branches, sub-
sidiaries, or affiliates of such firms for business development and trade
expansion in such countries, including loans for private home con-
struction, and for loans to domestic or foreign firms (including
cooperatives) for the establishment of facilities for aiding in the utili-
zation, and distribution, or othermse increasing the consumption
of, and markets for, United States agricultural products: Provided,
however, That no such loans shall be made for the manufacture of
any products intended to be exported to the United States in com-
petition mth products produced in the United States and due con-
sideration shall be given to the continued expansion of markets for
United States agricultural commodities or the products thereof.
Foreign currencies may be accepted in repayment of such loans;
(f) To promote multilateral trade and agricultural and other eco-
nomic development, under procedures, established by the President,
by loans or by use in any other manner which the President may
determine to be in the national interest of the United States, par-
ticularly to assist programs of recipient countries designed to promote,
increase, or improve food production, processing, distribution, or
marketing in food-deficit countries friendl}^ to the United States,
for which purpose the President may utilize to the extent practicable
the services of nonprofit voluntary agencies registered with and
approved by the Advisory Committee on Voluntary Foreign Aid:
Provided, That no such funds may be utilized to promote religious
activities ;
(g) For the purchase of goods or services for other friendly countries;
(h) For financing, at the request of such country, programs em-
phasizing maternal welfare, child health and nutrition, and activities,
where participation is voluntary, related to the problems of population
growth, under procedures established by the President through any
agency of the tJnited States, or through any local agency which he
determines is qualified to administer such activities. Not less than 5
per centum of the total sales proceeds received each year shall, if
requested by the foreign country, be used for voluntar}^ programs to
control population growth;
(i) For paying, to the maximum extent practicable, the costs
outside the United States of carrying out the program authorized
in section 406 of this Act;
(j) For sale for dollars to United States citizens and nonprofit
organizations for travel or other purposes of currencies determined to
be in excess of the needs of departments and agencies of the United
22
States for such currencies. The United States dollars received from
the sale of such foreign currencies shall be deposited to the account
of Commodity Credit Corporation; and
(k) for pa}dng, to the maximum extent practicable, the costs of
carr3dng out programs for the control of rodents, insects, weeds, and
other animal or plant pests; Provided, That —
(1) Section 1415 of the Supplemental Appropriation Act, 1953,
shall apply to currencies used for the purposes specified in sub-
sections (a) and (b), and in the case of currencies to be used for
the purposes specified in paragraph (2) of subsection (b) the
Appropriation Act ma}' specifically authorize the use of such
currencies and shall not require the appropriation of dollars for
the purchase of such currencies;
(2) Section 1415 of the Supplem.ental Appropriations Act,
1953, shall apph' to all foreign currencies used for grants under
subsections (f) and (g), to not less than 10 per centum of the for-
eign currencies which accrue pursuant to agreements entered
into on or before December 31, 1964, and to not less than 20
per centum in the aggregate of the foreign currencies which
accrue pursuant to agreements entered into thereafter: Provided,
however. That the President is authorized to waive such applica-
bility of section 1415 in any case where he determines that it
vrouid be inappropriate or inconsistent wdth the purposes of
this title,
(3) No agreement or proposal to grant any foreign currencies
(except as provided in subsection (c) of this section), or to use
(except pursuant to appropriation Act) an}^ principal or interest
from loan repayments under this section shall be entered into or
carried out until the expiration of thirty da3's follovring the date
on which such agreement or proposal is transmitted by the
President to the Senate Committee on Agriculture and Forestr}^
and the Senate Committee on Foreign Eelations and to the
House Cormnittee on Agriculture, and the House Committee on
International Relations if transmitted while Congress is in
session, or sixt}' days following the date of transmittal if trans-
mitted while Congress is not in session.
(4) Any loan made under the authority of this section shall
bear interest at such rate as the President may determine but
not less than the cost of funds to the United States Treasur3^
taking into consideration the current average market 3d elds on
outstanding marketable obligations of the United States having
maturit}^ comparable to the maturity of such loans, unless the
President shall in specific instances after consultation with the
advisory committee established under section 407 designate a
different rate:
Provided, jurther, That paragraphs (2), (3), and (4) of the fore-
going proviso shall not apph" in the case of any nation where the
foreign currencies or credits owned b}^ the United States and
available for use b}^ it in such nation are determined b}' the
Secretar}^ of the Treasury to be in excess of the normal require-
rnents of the departments and agencies of the United States for
expenditures in such nations for the two fiscal 3'ears following the
fiscal vear in which such determination is made. The amount of
23
any such excess shall be devoted to the extent practicable and
without regard to paragraph (1) of the foregoing proviso, to the
acquisition of sites, buildings, and grounds under paragraph (4)
of subsection (b) of this section and to assist such nation in
undertaking self-help measures to increase its production of agri-
cultural commodities and its facilities for storage and distribution
of such commodities. Assistance under the foregoing provisions
shall be hmited to self-help measures additional to those which
would be undertaken without such assistance. Upon the deter-
mination by the Secretary of the Treasury that such an excess
exists with respect to any nation, the President shall advise the
Senate Committee on Agriculture and Forestry and the Senate
Committee on Foreign Relations and the House Committee on
Agriculture and the llouse Committee on International Relations
of such determination; and shall thereafter report to each such
committee as often as ma}^ be necessary to keep such committee
advised as to the extent of such excess, the purposes for which
it is used or proposed to be used, and the effects of such use.
(7 U.S.C. 1704.)
Sec. 105. Foreign currencies received pursuant to this Act shall be
deposited in a special account to the credit of the United States and
shall be used only pursuant to section 104, and any department or
agency of the Government using any of such currencies for a purpose
for which funds have been appropriated shall reimburse the Com-
modity Credit Corporation in an amount equivalent to the dollar
value of the currencies used. The President shall utilize foreign cur-
rencies received pursuant to this Act in such manner as will, to the
maximum extent possible, reduce any deficit in the balance of pa}-
ments of the United States. (7 U.S.C. 1705.)
Sec. 106. (a) Payment by anv friendh^ country for commodities pur-
chased for dollars on credit shall be upon terms as favorable to the
United States as the economy of such country will permit. Payment for
such commodities shall be in dollars with interest at such rates as the
Secretary may determine but not less than the minimum rate required
by section 201 of the Foreign Assistance Act of 1961 for loans made
under that section. Pa3'ment may be made in reasonable annual
amounts over periods of not to exceed twenty years from the date of
the last delivery of commodities in each calendar year under the
agreement, except that the date for beginning such annual payment
may be deferred for a period not later than two years after such date
of last delivery, and interest shall be computed from the date of such
last delivery. Delivery of such commodities shall be made in annual
installments for not more than ten years follomng the date of the sales
agreement and subject to the availability of the commodities at the
time delivery is to be made.
(b) (1) Agreements hereunder for the sale of agricultural commodities
for dollars on credit terms shall include provisions to assure that the
proceeds from the sale of the commodities in the recipient country are
used for such economic development purposes as are agreed upon in
the sales agreement or an}^ amendment thereto. (7 U.S.C. 1706.)
In negotiating such agreements with recipient countries, the United
States shall emphasize the use of such proceeds for purposes which
directly improve the lives of the poorest of their people and their
capacity to participate in the development of their countries.
24
(2) Greatest emphasis shall be placed on the use of such proceeds to
carry out programs of agricultural development, rural development,
nutrition, and population planning, and to carry out the program de-
scribed in section 406(a)(1) of this Act, in those countries which are
undertaking self-help measures to increase agricultural production,
improve storage, transportation, and distribution of commodities,
and reduce population growth in accordance with, section 109 of this
Act, and which programs are directed at and likely to achieve the
policy objectives of sections 103 and 104 of the Foreign Assistance
Act of 1961 and are consistent with the polic}^ objectives of this Act,
pursuant to agreements between the United States and foreign govern-
ments under which uses of such proceeds shall be made for such pur-
poses. Such uses shall be deemed pa3^ments for the purpose of section
103(b) of this Act, except that for any fiscal year the total value of
such payments ma}^ not exceed 15 per centum of the total value of all
agreements entered into under title I of this Act for such fiscal 3^ear.
Such payments shall be described in the reports required by section
408 of this Act and section 657 of the Foreign Assistance Act of 1961.
(3) In entering into agreements for the sale of agricultural com-
modities for dollars on credit terms under this title, priority shall be
given to countries which agree to use the proceeds from the sale of the
commodities in accordance with the country's agricultural develop-
ment plan which —
(A) is designed to increase the access of the poor in the recipient
country to an adequate, nutritious, and stable food supply;
(B) provides for such objectives as —
(i) making farm production equipment and facihties
available to farmers,
(ii) credit on reasonable terms and conditions for small
farmers, and
(iii) farm extension and technical information services
designed to improve the marketing, storage, transportation,
and distribution system for agricultural commodities and to
develop the physical and institutional infrastructure support-
ing the small farmer;
(C) provides for participation by the poor, insofar as possible,
in the foregoing at the regional and local levels ; and
(D) is designed to reach the largest practicable number of
farmers in the recipient country.
Sec. 107. (a) It is also the policy of the Congress to stimulate and
maximize the sale of United States agricultural commodities for dollars
through the private trade and to further the use of private enterprise to
the maximum, thereby strengthening the development and expansion
of foreign commercial markets for United States agricultural com-
modities. In furtherance of this policy, the Secretary of Agriculture is
authorized, notv/ithstanding any other provision of law, to enter into
agreements with foreign and United States private trade for financing
the sale of agricultural commodities for export over such periods of
time and on such credit terms as the Secretary determines will accom-
plish the objectives of this section. Any agreement entered into under
this section shall provide for the development and execution of
projects which will result in the estabhshment of facihties designed to
25
improve the storage or marketing of agricultural commodities, or
whicli will otherwise stimulate and expand private economic enterprise
in any friendly country. Any agreement entered into under this section
shall also provide for the furnishing of such security as the Secretary
determines necessary to provide reasonable and adequate assurance
of payment of the purchase price in dollars with interest at a rate
which will as nearly as practicable be equivalent to the average cost
of funds to the United States Treasury, as determined by the Secretary
of the Treasury, on outstanding marketable obligations of the United
States having maturities comparable to maturities of credits extended
under this section. In no event shall the rate of interest be less than
the minimum rate, or the delivery period, deferral of first payment,
or term of credit be longer than the maximum term, authorized in
section 106. In carrying out this Act, the authority provided in this
section for making dollar sales shaU be used to the maximum extent
practicable.
(b) In carrying out the provisions of this section, the Secretary shall
take reasonable precautions to safeguard usual marketings of the
United States and to avoid displacing any sales of United States
agricultural commodities which the Secretary finds and determines
would otherwise be made for cash dollars.
(c) The Secretary shall obtain commitments from purchasers that
will prevent resale or transshipment to other countries, or use for other
than domestic purposes, of agricultural commodities purchased under
this section.
(d) In carr3ring out this Act, the provisions of sections 102, 103(a),
103(d), 103(e), 103(f), 103 (j), 103 (k), 110, 401, 402, 403, 404, 405,
407, 408, and 409 shall be apphcable to sales under this section. (7
U.S.C. 1707.)
Sec. 108. The Commodity Credit Corporation ma3^ finance ocean
freight charges incurred pursuant to agreements for sales for foreign
currencies (other than those providing for conversion to dollars as
described in section 103(b) of this Act) entered into hereunder only to
the extent that such charges are higher (than would otherwise be the
case) by reason of a requirement that the commodities be transported
in United States-flag vessels. Such agreements shall require the balance
of such charges for transportation in United States vessels to be paid
in dollars by the nations or organizations with whom such agreements
are entered into. (7 U.S.C. 1708.)
Sec. 109. (a) Before entering into agreements with developing
countries for the sale of United States agricultural commodities on
whatever terms, the President shall consider the extent to which the
recipient country is undertaking wherever practicable self-help meas-
ures to increase per capita production and improve the means for
storage and distribution of agricultural commodities, including:
(1) devoting land resources to the production of needed food
rather than to the production of nonfood crops — especially non-
food crops in world suplus ;
(2) development of the agricultural chemical, farm machinery
and equipment, transportation and other necessary industries
through private enterprise;
(3) training and instructing farmers in agricultural methods
and techniques;
26
(4) constructing adequate storage facilities;
(5) improving marketing and distribution systems;
(6) creating a favorable environment for private enterprise and
investment, both domestic and foreign, and utilizing available
technical know-how ;
(7) establishing and maintaining Government policies to insure
adequate incentives to producers ;
(8) establishing and expanding institutions for adaptive agri-
cultural research;
(9) allocating for these purposes sufficient national budgetary
and foreign exchange resources (including those supphed by
bilateral, multilateral and consortium aid programs) and local
currency resources (resulting from loans or grants to recipient
governments of the proceeds of local currency sales) ;
(10) carrying out voluntary programs to control population
growth.
In taking these self-help measures into consideration the President
shall take into particular account the extent to which they are being
carried out in ways designed to contribute directly to development
progress in poor rural areas and to enable the poor to participate
actively in increasing agricultural production through small farm
agriculture.
(b) Notwithstanding any other provisions of this Act, in agreements
with nations not engaged in armed conflict against Communist forces or
against nations with w^hich the United States has no diplomatic
relations, not less than 20 per centum of the foreign currencies set
aside for purposes other than those in sections 104(a), (b), (c), and (j)
shall be allocated for the self-help measures set forth in this section.
(c) Each agreement entered into under this title shall describe the
program which the recipient country is undertaking to improve its
production, storage, and distribution of agricultural commodities; and
shall provide for termination of such agreement whenever the
President finds that such program is not being adequately developed.
(7 U.S.C. 1709.)
Sec. 110. Agreements shall not be entered into under this title during
any calendar year which will call for an appropriation to reimburse the
Commodity Credit Corporation in an amount in excess of $1,900,000,-
000, plus any amount by which agreements entered into under this
title in prior years have called or will call for appropriations to reim-
burse the Commodity Credit Corporation in amounts less than
authorized for such prior years.
Sec. 111. Not more than 25 per centum of the food aid commodities
provided under this title in each fiscal year shall be allocated and
agreed to be delivered to countries other than those with an annual
per capita gross national product of $300 or less and affected |by
inability to secure sufficient food for their immediate requirements
through their own production or commercial purchase from abroad,
unless the President certifies to the Congress that the use of such food
assistance is required for humanitarian food purposes and neither
House of Congress disapproves such use, by resolution, within thirty
calendar days after such certification. In determining per capita gross
national product for the purposes of this section, the President is
authorized and directed to make use of data developed by the World
27
Bank for its most recent annual report and relied upon by the Secretary
of the Treasury. A reduction below 75 per centum in the proportion
of food aid allocated and agreed to be delivered to countries with a
per capita gross national product of $300 or less and affected by
inability to secure sufficient food for their immediate requirements
through their own production or commercial purchase from abroad
which results from significantly changed circumstances occurring after
the initial allocation shall not constitute a violation of the requirements
of this section. Any reallocation of food aid shall be in accordance
with this section so for as practicable. The President shall report
promptly any such reduction, and the reasons therefor, to the Congress.
Sec. 201. (a) The President is authorized to determine requirements
and furnish agricultural commodities, on behalf of the people of the
United States of America, to meet famine or other urgent or extraor-
dinary relief requirements; to combat malnutrition, especially in
children; to promote economic and community development in
friendly developing areas; and for needy persons and nonprofit school
lunch and preschool feeding programs outside the United States.
The Commodity Credit Corporation shall make available to the
President such agricultural commodities determined to be available
under section 401 as he may request. (7 U.S.C. 1721.)
(b) The minimum quantity of agricultural commodities distributed
under this title shall be 1,300,000 tons of which the minimum dis-
tributed through nonprofit voluntary agencies and the World Food
Program shall be one million tons in each fiscal year, unless the Presi-
dent determines and reports to the Congress, together with his reasons,
that such quantity cannot be used effectively to carr}^ out the purposes
of this title: Provided, That such minimum quantity shall not exceed
the total quantity of commodities determined to be available for dis-
position under this Act pursuant to section 401, less the quantity of
commodities required to meet famine or other urgent or extraordinary
relief requirements.
Sec. 202. The President may furnish commodities for the purposes
set forth in section 201 through such friendly governments and such
agencies, private or public, including intergovernmental organizations
such as the World Food Program and other multilateral organizations
in such manner and upon such terms and conditions as he deems
appropriate. The President shall, to the extent practicable, utilize
nonprofit voluntary agencies registered with, and approved by, the
Advisory Committee on Voluntary Foreign Aid. Insofar as practicable,
all commodities furnished hereunder shall be clearly identified by
appropriate marking on each package of container in the language of
the locality where they are distributed as being furnished b}^ the
people of the United States of America. The assistance to needy
persons shall insofar as practicable be directed toward community
and other self-help activities designed to alleviate the causes of the
need for such assistance. Except in the case of emergenc}^, the President
shall take reasonable precaution to assure that commodities furnished
hereunder will not displace or interfere with sales which might other-
wise be made. (7 U.S.C. 1722.)
Sec. 203. The Commodity Credit Corporation may, in addition to
the cost of acquisition, pay with respect to commodities made available
under this title costs for packaging, enrichment, preservation, and
28
fortification; processing, transportation, handling, and other incidental
costs up to the time of their delivery free on board vessels in United
States ports; ocean freight charges from United States ports to desig-
nated ports of entry abroad, or in the case of landlocked countries,
transportation from United States ports to designated points of
entry abroad; and charges for general average contributions arising
out of the ocean transport of commodities transferred pursuant
thereto. (7 U.S.C. 1723.)
Sec. 204. Programs of assistance shall not be undertaken under this
title during any calendar year which call for an appropriation of more
than $600,000,000 to reimburse the Commodity Credit Corporation
for all costs incurred in connection with such programs (including the
Corporation's investment in commodities made available) plus any
amount by which programs of assistance undertaken under this title
in the preceding calendar year have called or will call for appropriations
to reimburse the Commodity Credit Corporation in amounts less than
were authorized for such purpose during such preceding year. In addi-
tion to other funds available for such purposes under any other Act,
funds made available under this title may be used in an amount not-
exceeding $7,500,000 annually to purchase foreign currencies accruing
under title I of this Act in order to meet costs (except the personnel and
administrative costs of cooperating sponsors, distributing agencies,
and recipient agencies, and the costs of construction or maintenance
of any church owned or operated edifice or any other edifices to be
used for sectarian purposes) designed to assure that commodities made
available under this title are used to carry out effectively the purposes
for which such commodities are made available or to promote com-
munity and other self-help activities designed to alleviate the causes
of the need for such assistance : Provided, however, That such funds shall
be used only to supplement and not substitute for funds normally
available for such purposes from other non- United States Government
sources. (7 U.S.C. 1724.)
Sec. 205. It is the sense of the Congress that the President should
encourage other advanced nations to make increased contributions
for the purpose of combating world hunger and malnutrition, partic-
ularly through the expansion of international food and agricultural
assistance programs. It is further the sense of the Congress that as a
means of achieving this objective, the United States should work for
the expansion of the United Nations World food program beyond
its present established goals. (7 U.S.C. 1725.)
Sec. 206. Except to meet famine or other urgent or extraordinary
relief requirements, no assistance under this title shall be provided
under an agreement permitting generation of foreign currency pro-
ceeds unless (1) the country receiving the assistance is undertaking
self-help measures in accordance with section 109 of this Act, (2) the
specific uses to which the foreign currencies are to be put are set forth
in a written agreement between the United States and the recipient
country, and (3) such agreement provides that the currencies will be
used for purposes specified in section 103 of the Foreign Assistance
Act of 1961. The President shall include information on currencies
used in accordance with this section in the reports required under
section 408 of this Act and section 657 of the Foreign Assistance Act
of 1961.
29
Title III
Sec. 301. [This section contains an amendment to section 407 of the
Agricultural Act of 1949, authorizins: Commodity Credit Corporation
to make commodities available to relieve distress.]
Sec. 302. [This section contains a revision of section 416 of the
Agricultural Act of 1949, which authorizes various methods of disposi-
tion by Commodity Credit Corporation of commodities in surplus
supply.]
Sec. 303. The Secretary shall, whenever he determines that such
action is in the best interest of the United States, and to the maximum
extent practicable, barter or exchange agricultural commodities owned
by the Commodity Credit Corporation for (a) such strategic or other
materials of which the United States does not domestically produce its
requirements and which entail less risk of loss through deterioration or
substantially less storage charges as the President may designate, or
(b) materials, goods, or equipment required in connection with foreign
economic and military aid and assistance programs, or (c) materials or
equipment required in substantial quantities for offshore construction
programs. He is hereby directed to use every practicable means, in
cooperation with other Government agencies, to arrange and make,
through private channels, such barters or exchanges or to utilize the
authority conferred on him by section 4(h) of the Commodity Credit
Corporation Charter Act, as amended, to make such barters or ex-
changes. In carrying out barters or exchanges authorized by this sec-
tion, no restrictions shall be placed on the countries of the free world
into which surplus agricultural commodities may be sold, except to
the extent that the Secretary shall find necessary in order to take rea-
sonable precautions to safeguard usual marketings of the United States
and to assure that barters or exchanges under this Act will not unduly
disrupt world prices of agricultural commodities or replace cash sales
for dollars. The Secretary may permit the domestic processing of raw
materials of foreign origin. The Secretary shall endeavor to cooperate
with other exporting countries in preserving normal patterns of
commercial trade with respect to commodities covered by formal
multilateral international marketing agreements to which the United
States is a party. Agencies of the United States Government pro-
curing such materials, goods, or equipment are hereby directed to
cooperate with the Secretary in the disposal of surplus agricultural
commodities by means of barter or exchange. The Secretary is also
directed to assist, through such means as are available to him, farmers'
cooperatives in effecting exchange of agricultural commodities in
their possession for strategic materials. Barter or exchange of agricul-
tural commodities under clause (a) of this section shall be limited to
exchange for materials which originate in the country to which the
surplus agricultural commodities are exported and to arrangements
which will prevent resale or transshipment of the agricultural com-
modities to other countries. (7 U.S.C. 1692.)
Sec. 304-308. [Repealed on November 11, 1966, by Public Law 89-
808.]
Title IV
Sec. 401. After consulting with other agencies of the Government
affected and within policies laid down by the President for implement-
30
ing this Act, and after taking into account productive capacity,
domestic requirements, farm and consumer price levels, commercial
exports, and adequate carryover, the Secretary of Agriculture shall
determine the agricultural commodities and quantities thereof avail-
able for disposition under this Act, and the commodities and quantities
thereof which may be included in the negotiations with each countr}^
No commodity shall be available for disposition under this Act if such
disposition would reduce the domestic supply of such commodity
below that needed to meet domestic requirements, adequate carryover,
and anticipated exports for dollars as determined by the Secretary of
Agriculture at the time of exportation of such commodity. (7 U.S.C.
1731.)
Sec. 402. The term ''agricultural commodity" as used in this Act
shall include any agricultural commodity produced in the United States
or product thereof produced in the United States: Provided, however,
That the term ''agricultural commodity" shall not include alcoholic
beverages, and for the purposes of title II of this Act, tobacco or
products thereof. The foregoing proviso shall not be construed as
prohibiting representatives of the domestic mne industry from par-
ticipating in market development activities carried out wath foreign
currencies made available under title I of this Act which have as their
purpose the expansion of export sales of United States agricidtural
commodities. (7 U.S.C. 1732.) Subject to the availability of appropria-
tions therefor, any domestically produced fishery product may be
made available under this Act. (7 U.S.C. 1732.)
Sec. 403. There are hereby authorized to be appropriated such sums
as may be necessary to carry out this Act including such amounts as
may be required to make payments to the Commodity Credit Cor-
poration, to the extent the Commodity Credit Corporation is not reim-
bursed under sections 104(j) and 105, for its actual costs incurred
or to be incurred. In presenting his budget, the President shall classify
expenditures under this Act as expenditures for international affairs
and finance rather than for agriculture and agricultural resources.
(7 U.S.C. 1733.)
Sec. 404. The programs of assistance undertaken pursuant to this
Act shall be directed toward the attainment of the humanitarian
objectives and national interest of the United States. (7 U.S.C. 1734.)
Sec. 405. The authority and funds provided by this Act shall be
utilized in a manner that will assist friendly countries that are deter-
mined to help themselves toward a greater degree of self-reliance in
providing enough food to meet the needs of their people and in re-
solving their problems relative to population growth. (17 U.S.C.
1735.)
Sec. 406. (a) In order to further assist friendly developing countries
to become self-sufficient in food production, the President is author-
ized, notwithstanding any other provision of law —
(1) To establish and administer a program of farmer-to-farmer
assistance between the United States and such countries to help
farmers in such countries in the practical aspects of increasing
food production and distribution and improving the effectiveness
of their farming operations;
(2) to enter into contracts or other cooperative agreements with,
or make grants to, land-grant colleges and universities and other
31
institutions of higher learning in the United States to recruit per-
sons who by reason of training, education, or practical experience
are knowledgeable in the practical arts and sciences of agriculture
and home economics, and to train such persons in the practical
techniques of transmitting to farmers in such countries improved
practices in agriculture, and to participate in carrying out the
program in such countries including, where desirable, additional
courses for training or retraining in such countries ;
(3) To consult and cooperate wdth private non-profit farm
organizations in the exchange of farm youth and farm leaders with
developing countries and in the training of farmers of such de-
veloping countries within the United States or abroad ;
(4) To conduct research in tropical and subtropical agriculture
for the improvement and development of tropical and subtropical
food products for dissemination and cultivation in friendly
countries;
(5) To coordinate the program authorized in this section with
other foreign assistance activities of the United States ;
(6) To establish by such rules and regulations as he deems
necessary the conditions for eligibility and retention in and dis-
missal from the program established in this section, together with
the terms, length and nature of service, compensation, employee
status, oaths of office, and security clearances, and such persons
shall be entitled to the benefits and subject to the responsibilities
applicable to persons serving in the Peace Corps pursuant to
the provisions of section 612, volume 75 of the Statutes at Large,
as amended; and
(7) To the maximum extent practicable, to pay the costs of
such program through the use of foreign currencies accruing
from the sale of agricultural commodities under this Act, as
provided in section 104(i).
(b) There are hereby authorized to be appropriated not to exceed
$33,000,000 during any fiscal year for the purpose of carrying out the
provisions of this section. (7 U.S.C. 1736.)
Sec. 407. There is hereby established an Advisory Committee com-
posed of the Secretary of State, the Secretary of the Treasury, the
Secretary of Agriculture, the Director of the Bureau of the Budget,
the Administrator of the Agency for International Development, the
chairman and the ranking minority member of both the House
Committee on Agriculture and the House Committee on Foreign
Affairs, and the chairman and the ranking minority member of both
the Senate Committee on Agriculture and Forestry and the Senate
Committee on Foreign Relations, or their designees (who shall be
members of such committees or, in the case of members from the
executive branch, who shall have been confirmed by the Senate).
The Advisory Committee shall survey the general policies relating
to the administration of the Act, including the manner of implement-
ing the self-help provisions, the uses to be made of foreign currencies
which accrue in connection with sales for foreign currencies under
title I, the amount of currencies to be reserved in sales agreements
for loans to private industry under section 104(e), rates of exchange,
interest rates, and the terms under which dollar credit sales are made,
and shall advise the President w^ith respect thereto. The Advisory
32
Committee shall meet not less than four tunes during each calendar
year at the call of the Acting Chairman of such Committee who shall
preside in the following order: The chairman of the House Committee
on Agricidture, the chairman of the Senate Committee on Foreign
Relations, the chairman of the Senate Committee on Agriculture and
Forestry, and the chairman of the House Committee on Foreign
Affairs. (7 U.S.C. 1736a.),
Sec. 408. (a) The President shall make a report to Congress not
later than April 1 each year with respect to the activities carried out
under this Act during the preceding fiscal year. Such report shall
describe the progress of each country with which agreements are in
effect under title I in carrying out its agreements under such title.
(7 U.S.C. 1736b.)
(b) In his presentation to the Congress of planned programing
of food assistance for each fiscal year, the President shall include a
global assessment of food production and needs, self-help steps which
are being taken by food-short countries under section 109(a) of this
Act, steps which are being taken to encourage other countries to
increase their participation in food assistance or the financing of food
assistance, and the relationship between food assistance provided to
each country under this Act and other foreign assistance provided
to such country by the United States and other donors.
(c) Not later than November 1 of each calendar year the President
shall submit to the House Committee on Agriculture, the House Com-
mittee on International Relations, the Senate Committee on Agricul-
ture and Forestry, and the Senate Committee on Foreign Relations a
revised global assessment of food production and needs, and revised
planned programing of food assistance for the current fiscal year,
to reflect, to the maximum extent feasible, the actual availability of
commodities for food assistance.
Sec. 409. No agreements to finance sales under title I and no pro-
grams of assistance under title II shall be entered into after Decem-
ber 31, 1977. (7 U.S.C. 1736c.)
Sec. 410. The provisions of section 620(c) of the Foreign Assistance
Act of 1961, as amended (referring to nationalization, expropriation,
and related governmental Acts affecting property owned by United
States citizens), shall be applicable to assistance provided under title
I of this Act. (7 U.S.C. 1736d.)
Sec. 411. No agricultural commodities shall be sold under title I
or title III or donated under title II of this Act to North Vietnam,
unless by an Act of Congress enacted subsequent to July 1, 1973,
assistance to North Vietnam is specifically authorized.
Sec. 412. The President is authorized and encouraged to seek inter-
national agreement, subject to congressional approval, for a system
of food reserves to meet food shortage emergencies and to provide
insurance against unexpected shortfalls in food production, with costs
of such a system to be equitably shared among nations and with
farmers and consumers to be given firm safeguards against market
price disruption from such a system.
STATISTICAL TABLES RELATING TO PUBLIC LAW 480
TABLE I.-VALUE OF U.S. FARM PRODUCTS SHIPPED UNDER PUBLIC LAW 480 ANNUALLY. 1955-77
[In thousands of dollars]
Total Title I Title II
1955 384, 425
1956 884,903
1957 1, 525, 062
1958 981,033
1959 1, 017, 286
1960 1,115,866
1961 1, 316, 366
1952 1, 495, 498
1963 1, 456, 269
1964 1,417,993
1965 1,570,487
1966 1,345,879
1967 1,270,818
1968 1, 279, 464
1969 1, 038, 590
1970 1,055,815
1971 1,022,963
1972 1,082,741
1973 957,361
1974 858,291
1975 .. 1, 098, 057
1976 estimate 1,359,147
1977 estimate 1, 231, 000
(33)
197, 584
186, 841
737, 236
247, 667
1, 308, 283
216,779
757, 292
223, 741
856, 402
160, 884
973, 104
142,762
1,095,449
220,917
1, 246, 768
248, 730
1, 192, 805
263, 464
1, 148, 043
269, 950
1,331,739
238, 748
1,079,357
266, 522
1,003,450
257, 368
1,029,326
250, 138
773, 853
264, 737
815,221
240, 594
743,018
279, 945
679, 000
403, 741
667, 400
289, 961
575, 376
282,915
763, 620
334, 437
983, 000
376, 147
866, 000
365,000
34
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39
TABLE VI -PRESENTATION TO THE CONGRESS OF PROJECTED PROGRAMING FOR FISCAL YEAR 197S, PUBLIC LAW
480, TITLE II
(Value and volume of commodities by country; dollars in thousands]
Fiscal
Fiscal
year
1975
Fiscal year 1976
Total
value
Wheat
Feedgrain
Vegoil
1
Region/country
Value
Metric
tons
Valuo
Metric
tons
Value
Metric
tons
AFRICA
Botswana— World food pro-
gram
$1,849
7,497
4,619
690 .
2,188
1,932
1,395
537
517
2,674
1.413
1.261
11,584
10, 008
122 .
1.454
6.769
6,568
12 .
189
2.336
1,501
£35
14. 320
12.350
52, 425
2,026
1,357
51,959 .
1,123
561
51,615
9.012
,3«
332
Ethiopia (total)
51, 105
561
7.867 .
3. 992 .
17
Government to Government-
Voluntary agencies
World food program
669
2,310
2,197
113
905
2,319
1,357
962
6,519
6,371
""148'
1.920
1.527
""393"
2.296
1.226
1.070
6,258
5,271
562
1. 580 .
1.480 .
100 .
1.048
2.165
1,618
548
2,570
999 .
1,487 .
84
2,824
999 .
1,487 .
338
1.8C1
1,173
628
2.589
999 .
1.487 .
103
3.075
2,314
999 .
1, 258 .
57
1.753
1. 580 .
188
4,574
959 .
3,615
2,742
545
481
343
340
3
41
41"
271
.........
1.356
897
459
26
26'"
1. 075
21
21"'
103
""163"
2.054
""2.'654"
200
3,875 .
2.201
1.956
1.945
20
235
""236"
1,745
"i.'745".
7.661
5, 068 .
2, 593
147
""l47'
6.237
123
""123'
544
""544'
14,605
'14,' 505'.
1,168
17
126
84
42
456
958
802
155
24
17
Ghana (total).
1.454
1,396
58
111
865
476
389
2,505
999
1,437
19
2,485
999
1,487
.........
5,455
6,159
296
723
10.415
5,601
4.815
15.643
9,979 .
5.571 .
98
15, 550
9,979 .
5.571 .
"i.'oss'
117
Voluntary agencies
World food program
Ivory Coast— World food pro-
gram
Lesotho (total)
77
40
440
885
Voluntary agencies
World food program
Mali (total)
Government to Government.
735
150
23
Voluntary agencies
World food program
Mauritania
Government to Government.
24
67
23
65
Voluntary agencies
World food program
Mauritius (total)
67
328
275
52
34
65
317
Government to Government.
267
World food program
Niger (total)
Government to Government.
117
2,529
999
1,487
43
1,991
2,293
999
1,258
36
1.002
989
13
783
783
1.065
16.025
9,979 .
5.571 .
475
17,029
15,433 .
9, 979 .
6, 075 .
378 .
6.065
5.906
159
4.858
4,S58
50
33
Voluntary agencies
World food program
Nigeria— World food program.
Sengal (total)
1,S70
2.228
5.205
3,558
489
1,358
1,178
981
197
1,871
654
1.217
2,379
987
2.254
1,550
724
755
70
2,377
2,173
204
9,113
995
8,123
11,906
6, 328 .
2,845
2,233 .
1,277
776
501
2,703
774
1,539
390
937
925
12
34
9
33
9
Government to Government.
Voluntary agencies
World food program
Sierre Leone (total)
""663"'
591
72
1,737
175
1,561
1.224
'"625
Voluntary agencies
World food program
Sudan (total)
555
70
1,667
Voluntary agencies
World food program
161
1,506
Tanzania (total)
Government to Government..
1,318
6,538
1,123
Voluntary agencies
World food program
1.858
521
1,122
762
360
6,125
4,522
603
l.COl
292
292
2.742
200
1,168
1,313
6.538
1.224
1.123
Togo (total)
Voluntary agencies
World food program
Upper Voita (total)
Government to Government
1.314
943
371 .
3,745
999 .
2,4i0 .
335
1,702
1.690 .
12
413
413
34"
1,476
1,476
""195'
513
218
295
3,407
999
2,226
182
566
552
4
5.066
2. 568
2.498
21, 520
9,979 .
9,730
1,811
4.673
4,554
19
388
312
76
304
360
286
74
285
Voluntary agencies
184
120
1,132
1,128
4
169
World food program
Zaire (total)
Voluntary agencies
World food frogram
34
4
a"
li35
21
21*
116
1,038
1,034
4
Other.
Subtotal.
Total, Atrica.
. 69,879
. 13,658
59,100
15,612
38. 894
7.755
7,523
2,099
46. 192
12. 368
23, 555
3,591
156, 976
23, 142
7,811
2.066
7,336
1,896
. 83,537
74. 712
46,550
9.627
58, 560
27, 146
180,118
9.877
9,232
40
TABLE VI.— PRESENTATION TO THE CONGRESS OF PROJECTED PROGRAMING FOR FISCAL YEAR 1976,
PUBLIC LAW 480. TITLE II— Continued
[Value and volume of commodities by country; dollars in thousands]
Fiscal
year
1974
Fiscal
year
1975
Fiscal year 1978
Total
value
Wheat
Feedgrain
Vegoil
Region/country
Value
Metric
tons
Value
Metric
tons
Value
Metric
tons
NEAR EAST AND
SOUTH ASIA
Afghanistan— World food
program
44
;*"3,"326"
1,319
. 2,001
3, 810
2,428
4,001
3, 300
70i'
19, 197
13, 761
5,435
104, 840
74, 964
29, 875
1,787
815
972
'"i2,'i26*
12, 126
1,850
2,119
1,774
981
2,119
245
6, 288 .
11,970 .
1,166
869
839
Algeria-World food program.,
Bangladesh (total)
852
4,404
677
620
Government to Government
Voluntary agencies ,
World food program.
1,774
245
1,165
852
4,404
677
620
Egypt (total)
. 3,153
. 2, 899
254
. 60,287
. 55,599
. 3,688
. 1,147
302
845
866
. 16,662
. 15,786
876
. 4, 828
233
. 4, 595
2,611
2,811
12,821
8,312
4,509
74, 104
69, 522
4,582
1,980
1,107
873
1,329
7,794
7,794
9,806
5,397
4,509
37. 531
33, 227
4,354
1,218
491
727
459
5,275
5,275
40, 509
28, 206
12, 303 .
124, 754
105, 786
18,973
6,589
2,451
4, 138 .
2,269
21,434
21,434
1,787
1,787
8,601
8,601
1,128
1,128
1.034
Voluntary agencies
World food program
1,034
India (total)
Voluntary agencies
World food program
Jordan (total)
Voluntary agencies
World food program
19, 750
19, 522
228
160
160
S5, 789
93, 762
2,027 .
684
684
16, 774
16.773
15. 388
15,388
602
456
146
772
1,246
1,245
559
418
141
Jordan, WB— Voluntary
agencies
Morocco (total)
Voluntary agencies
World food proijram
Pakistan (total)
Voluntary agencies
World food program
Sri Lanka (total)
98
1,273
1,273
188
6,597
6,597
708
1,142
1.142
4,661
1,002
3,659
4,547
2,823
1,724
2,445
1,378
1,068
4, 960
3, 541
1,419
2,500
861
673
188
4,395
3,488
907
1, 5S5
2,860
1,525 .
1,335
13,244
8, 123 .
5, 121
11,340 .
880
■""880"
512
"""'5i2"'
8,175
■"8,'i75'.
4,650
■""4,'550\
705 .
705
53"
53
646
646
48
Voluntary agencies
48
Syria (total)
Voluntary agencies
World food program
1 -.
1 ..
905
873
2,500
6,003
2, 654
2,797
552
1,325
1,595
3,828
1,534
1,878
416
1,325
11,340 .
19,002
8,667
7,987 .
2,348 .
9,421 .
.........
577
"2,"274"
2,274
905
1,598
543
919
136
873
Tunisia (total)
Government to Govern-
ment
Voluntary agencies
6,249
2,074
2,948
1,227
3,792
3,792
5,290
2,278
2,405
607
3,964
2,380 .
1,584
2,387
2,387
1,498
524
843
World food program
Turkey (total)
131
Voluntary agencies
World food proeran
1,325
1,300
1,300
1,325
1,178
1,178
9,42) .
7,480
7,480
Yemen (total)
Voluntary agencies
World food program
1,560
978
582 .
43
43
171
171
79
79
72
72
Subtotal ~
Other
104,520 ]
24, 793
169,038 :
4,797
122,305
2,234
70, 966
808
278,336
3,832
25, 932
1,076
131,553
8,302
25. 407
350
23,427
330
Grand total, NESA...
129,313 ,1
173,835 :
124,539,
71,774
282, 158
27,008
139,855
25, 757
23.757
EAST ASIA
Indonesia (total) 9,151
Government to Government. 5,365
Voluntary agencies 1,277
World food program 2,509
Khmer Republic (total) 15
Government to Government
Voluntary agencies 15
Korea— World food program.. 5, 553
Laos(tot3l) 3,441
Government to Government. 3,080
Voluntary agencies 361
Philippines (totsi) 11,990
Voluntary agencies 8,323
World food program 3,662
Vietnam (total) 995
Government to Government. 37
Voluntary agencies 958
World food program
Subtotal
Other countries in region less
than 1.000,000
Grand total. East Asia.
8,270 4,060 3,590 16,828 470 3,101 -.
"3,'ii5 937 659"'"'2,"658 278"*'i,"50i'!]l!II""I^""I
5,155 3,123 2,931 14,770 192 1,600
1,764
0
1,764
8,646 7,559 7,315 41,327 98 496 45 140
3,199 4,718 2,589 13,550 909 7,252 1,220 1,169
2,943 3,283 1,962 10,309 810 6,632 1.051 1,014
256 895 627 3,241 99 620 169 155
9,527 10,129 2,539 11,994 7,559 47,299 31 30
8,854 9,564 2,217 10,172 7,347 45,528
673 565 322 1,822 212 1,771 31 30
3,325
0
3,212
113
. 31,145
203
34, 731
454
26, 466
403
16, 034
297
83,699
1,682
9,035
35
58, 148
183
1,395
70
1,339
148
. 31,348
35, 185
26, 869
16. 331
85, 381
9,072
58, 331
1.466
1,487
41
TABLE VI.— PRESENTATION TO THE CONGRESS OF PROJECTED PROGRAMING FOR FISCAL YEAR 1976,
PUBLIC LAW 480, TITLE 11— Continued
[Value and volume of commodities by country; dollars in thousands]
Fiscal
year
1974
Fiscal
year
1975
Fiscal year 1976
Total
value .
Wheat Feedgrain
Vegojl
Region/country
Metric Metric
Value tons Value tons
Metric
Value tons
LATIN AMERICA
Bolivia (total) 1,847 4,257
Government to Govern-
ment
Voluntary agencies.
World food program ,
Brazil (total)
Government to Government
Voluntary agencies
World food program
Chile (total)
Voluntary agencies
World food program ,
Columbia (total)
Voluntary agencies
World food program
Dominican Republic (total)..
Voluntary agencies.
World food program
Ecuador (total) ,
Voluntary agencies
World food program
Guatemala (total)..
Voluntary agencies. ,
World food program
Haiti (total)
Voluntary agencies
World food program
Honduras (total)
Voluntary agencies
World food program
Nicaragua (total)
Voluntary agencies
World food program
Panama— Voluntary agencies.
Peru (total)
Government to Government
Voluntary agencies
World food program
Subtotal
Other
Grant total, Latin
America 38,716 64,932
4,553 1,081 5,035 2,538 4,861
934
861
306
3,614
307
4,246
159
922
829
4,206
45
2,493
297
4,564
103
831
99
. 1,722
762
125
337 .
8,313
'
. 5, 456
1,642
795
4,489
614
3,171
233
225
. 2, 270
2,115 .
. 2,044
4,281 .
. 1,142
1,917
,1,642
795
,4,489
614
3,171
,233
225
. 3,210
3,999
4,686
3,059
11,705
389
2,065
1.238
1,137
. 3,210
3,736
4,451
2,883
10, 708
377
2,003 •
1,191
1,092
263
12,835
235
10,335
176
3,535
997
15,779
12
2,683
63
13,815
47
4,017
45
. 6, 844
3,763
. 5, 093
8,830
7,721
2,929
11,789
2,433
10,718
2,359
2.163
. 1.751
4,005
2,614
706
3,990
250
3,097
1,658
1.600
4,279
5,506
5,046
1,531
5,006
2,058
10, 883
1,457
1,336
4,249
30 .
5,506
5,046
1,531
5,006
2,058
10. 883
1,457
1.336
. 3, 328
3,505
2,559
1,294
5.572
590
2,484
675
626
. 3,328
2,907
2,022
1,006
3,910
497
2,011
519
476
598
5,216
537
4,116
■ 288
989
1,652
4,587
93
1,895
473
6,216
156
1,232
150
. 1,187
1.130
1,180
5,170
4,077
976
4,512
1,879
6,056
1,222
1,120
7
45
39
13
75
16
160.
10
10
. 2,012
2,640
2,390
1,242
5,685
474
2,838
674
622
. 1.952
2,349
2,065
1,117
4,982
361
1,712
588
539
60
29!
324
125
7oa
113
1,126
86
•83
1,168
2,348
1,002
609
2,353
204
1.068
189
177
783
2,066
740
440
1,460
204
1,068
96
87
385
282
262
169
893 .
93
90
. 2,029
1.742
1.486
131
722
926
5,114
429
394
521
1,617
1,382
60
323
893
4,814
429
394
. 1,508
125
104
81
399
33
300 .
712
1,890
1.103
163
553
618
3, 341
321
294
3,418
9.650
6,112
2,414
11,587
2,130
11,966
1,568'
"1,473
403
3,972
1,975
880
4,615
722
2,848
373
350
2 666
3, 973
1,705
2,810
1,327
1,167 .
367
■■"2," 156'
811 .
597
832 .
363
349
6,203
350
. 35,490
61,901
45, 030
16,944
73, 073
15,119
70, 823
12, 967
12,038
. 3, 226
3,031
1,914
459
2,299
995
2,660
460
501
46,944 17,403 75,372 16,114 73,483 13,427 12,539
42
Vi
■.a
<: „_
< —
S =
O 3
q: o
a- E
z Z
O J2
»- "o
<: Q
o.-ieo<
coooSr
(jl? CO U-> CT)
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o E
3 £g5£
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E=2S
43
TABLE VII.— PUBLIC LAW 480 TITLE II SHIPMENTS BY SPONSOR
(In metric tons grain equivalenll
Fiscal year-
Item
1972
1973
1974
1975 estimate
1975 projected
1,637,146
1. 065, 982
705,977
750. 4S2
620, 652
1,018.749
279,118
109, 400
229 879
710. 560
285, 578
64, 820
5,024
496, 945
170,297
37,754
980
432,578
275, 192
32, 527
10,035 .
281,005
298, 532
41,115
380, 318
351. 127
341,518
366, 469
310.040
226. 669
111.980
20, S53
250, C47
95,180
14, 514
1,385 ..
179,279
150, 847
11,392
202, 271
111,929
13,830
38.439 .
204, 225
92, 527
13,288
21 116
2,017,464
1. 427. 109
1,047,495
1.116.951
930, 692
689, 090
844, 048
456, 200
318. 329
374, 057
416, 163
643, 312
135, 839
32. 177
32,720 ..
61.514
390,300
4.386
66, 188
127,319
2.322
122, 500 .
133.703
99, 428
236. 938
57. 183
116.316
3.416
. 2, 706. 554
2.271,157
1. 503. 695
1. 435. 280
1. 304. 749
Voluntary agencies total
Wheat
Feed grains
VeRoii
Otner
World food program tcta!
Wheat
Feeograin.';
Vegoil
Other
Subtotal voluntary ajcncies and
world food programs
Government to Government total..
Wheat
Feedgrains
Vegoil
Other
Grand total
Wheat 1,661,581
Feedgrains 490. 526
Vegon 187, 136
Other : 367, 311
1,603.919
516, 597
111,511
39.130
737, 739
711.444
53, 532
701, 137
514, 440
48,679
171,024
618.933
627. 997
57, 819
o
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